As a global company with a diverse portfolio of products and services, we use a comprehensive framework of indicators to manage performance. The most important key performance indicator (KPI) for measuring performance is EBITDA pre1.
The Value Creation and Financial KPI Pyramid, which summarizes our important financial performance measures, reflects the comprehensive framework of financial KPIs to steer the businesses and prioritize the allocation of cash resources. It consists of three managerial dimensions: Merck Group, Business, and Projects, each of which requires the use of different indicators.
Abbreviations
EBITDA pre1 = Earnings before interest, income tax, depreciation and amortization as well as adjustments.
EBITDA pre-margin1 = Earnings before interest, income tax, depreciation and amortization as well as adjustments in percent of the net sales.
EPS = Earnings per share.
EPS pre1 = Earnings per share before adjustments.
MEVA1 = Merck value added.
OCF1 = Operating cash flow.
ROCE1 = Return on capital employed.
NPV1 = Net present value.
IRR1 = Internal rate of return.
eNPV1 = Expected net present value.
PoS1 = Probability of success.
M&A = Mergers and acquisitions.
1 Not defined by International Financial Reporting Standards (IFRS).